Economic growth in the Euro Area increased to 0.3 percent in the fourth quarter, which is still a quite moderate pace of recovery. The Conference Board Leading Economic Index® (LEI) for the Euro Area rose for the seventh month in a row in December, which supports previous optimism about the economic outlook. Unemployment is declining in some but not all of Europe’s troubled economies. Persistent low inflation in the Euro Area has raised concerns about deflation, and some countries have already seen prices decline. Some structural changes underway in Europe’s hardest hit economies can potentially affect the recovery positively

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Economics Watch Reports
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